Sources say Attorney General Eric Schneiderman is preparing to sue a taxi mogul for failing to pay taxi drivers.
Sources say Schneiderman is suing Evgeny "Gene" Freidman and several taxi companies he partly owns for breaching a settlement they entered into with the attorney general in December of 2013.
They say the settlement required Freidman to pay more than $700,000 in restitution to drivers who were charged higher rates to lease cabs and medallions than legally allowed.
Sources also say the suit alleges one of the companies—called Woodside Management—paid its drivers up to a month late for credit card fares.
It's also accused of giving the attorney general's office false documents to hide the late payments.
Freidman oversees one of the largest fleets in the city, with nearly 900 medallions under his control.
A spokesperson for Freidman says he "honors his agreements with the Attorney General, and finds the timing of any action suspicious."